Supply tightens for crushing
Even as the groundnut production has remained robust in kharif and summer season this year, the oil millers in Gujarat are crying foul on the reduced availability of groundnut for crushing. The situation has jacked up groundnut oil prices to hover above Rs 1,500 per tin of 15 kg.
This, when the prices had already been ruling higher for past two weeks. In retail market, the prices of groundnut oil have gained by around Rs 100 per 15 kg tin in last four days.
The fall in the groundnut availability is attributed to the rise in prices. The export demand for peanuts has been rising to countries like China, Taiwan and Indonesia. Also, the exports to countries like Indonesia, Philippines and parts of Europe has picked up in recent times. In Indonesia groundnut is used for both direct consumption and for crushing purpose.
The prices hovered at Rs 1545-1550 per 15 kg against Rs 1325-1330 per tin on May 31. Similarly, groundnut oil 'loose' for 10 kg has jumped by Rs 100 in past nine days to Rs 930-935 per 10 kg as against Rs 830-835 per 10 kg. About 80,000 to 100,000 bags (a bag= 40 kg) of groundnut arrive every day in the markets of Saurashtra and Gujarat. The price of groundnut bold stood at Rs 662-715 and small hovered at Rs 557-800 per 20 kg. Groundnut seed prices stood at Rs 960-1025 per 20 kg in Rajkot APMC.
"The main reason behind recent price hike is lack of availability of groundnut, which is the main raw material for groundnut oil. It is true that rabi groundnut production is good and kharif production has also been encouraging but most of the stock has been consumed for exports and peanut products," said Suresh Kaneria, managing director of Kaneria Oil Industry.
About 50,000 to 60,000 bags groundnut arrives every day in Saurashtra and other parts of Gujarat. Groundnut bold quoted at Rs 500-702 per 20 kg, while small quality stood at Rs 665-815 per 20 kg. The groundnut seed prices hovered at Rs 850-987 per 20 kg.
Echoing similar sentiments, Vikram Duvani of Rachana Seeds Industries from Junagadh informed that export demand for groundnut had been rising. "The export demand is rising from all export markets. China is also in a queue to buy groundnut from India. Moreover now groundnut is used as replacement of cashew in various products like chocolate, butter as value addition," said Duvani.
According to the estimates provided by the Indian Oilseeds and Produce Export Promotion Council (IOPEPC), the summer groundnut production in Gujarat would remain at around 271,000 tonnes as against 129,000 tonnes last year, showing an impressive growth of 110 per cent.
Kharif groundnut production is also predicted to be higher by around 1.8-2.0 million tonnes.
